Governing Magazine: The Manufacturing Boom Set Off By Clean Energy Tax Credits

Van Buren Township, less than 30 miles outside downtown Detroit, was already part of the great auto supply chain in the Upper Midwest, but now it’s playing a much larger role. In October, a company called Our Next Energy began production of lithium-ion phosphate battery cells, the first fruits of the company’s $1.6 billion investment in a gigantic factory in the township. A few weeks later, the company cut the ribbon at its new headquarters in nearby Novi.

Other companies have come forward with plans to manufacture equipment for solar and hydrogen power in Michigan, as well as batteries and electric vehicles. These announcements add up to nearly $11 billion in new clean energy investment in the state prompted by passage in 2022 of the federal Inflation Reduction Act (IRA). That law offers both governments and private companies tax credits to help pay for clean energy projects.

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